Loading ...Here we go again. But for how long and how high? The last time they raised them from 1970 to 1982 about 5% to 18% on a variable rate. Everybody wanted the cash to deposit.
They killed the stock market prices, house prices, killed antiques collectibles gold and silver etc. The wildcard is if the economy starts crashing hard they’ll have to drop rates again.
During the 1970s like they strangled parts of the economy until the eyes were bulging and near death, then they release the grip and get a relief rally. After 1982 a series of booms and busts with stocks and real estate but commodities fell until 2001.
part:
Mortgage demand continued to crumble last week, as mortgage rates climbed to their highest level since 2010. Total application volume fell 5% last week compared with the previous week and was nearly half of what it was one year ago, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.20% last week from 5.13%, with points rising to 0.66 from 0.63 (including the origination fee) for loans with a 20% down payment. One year ago, the rate was exactly 200 basis points lower at 3.20%.
Mortgage demand falls to nearly half of what it was a year ago